Choco biz sees built-in growth

From the grass roots to the elite, from the proletariat to the gentry, a whole cross-section of individuals are fond of relishing candies and chocolate one way or the other while their fondness has driven the market growth by 10 per cent year-on-year.

Local manufactures of the soft creamy food items are up and doing their best to maintain international standard for their variety of products both for competing in local market with foreign brands and sending them to overseas destinations.

A series of diversified low-sugar products with delectable flavour and affordable price, plus rising level of consumers’ taste and income status are the key to boosting the domestic sale.

According to the market players, their business is growing by 10 per cent every year while the total market size is around Tk 2,000 crore.

Bangladesh Lozenge Manufacturing Association president Anisur Rahman Badsha told The Business Post there are some 100 factories all over the country producing candies and chocolate.

“The local products have a high demand in rural areas as their price is comparatively lower than those of foreign brands. Lollipops and bubble gums are very popular among kids,” said the businessman. “Currently, Pran-RFL dominates the local candy market in terms of sales. Foreign products are mainly dear to urban consumers.”

PRAN-RFL, Olympic Industries, Danish, Perfetti Van Melle, Nestlé are a number of reputed brands while Titas, Elson and a few other players are also available in the market.

Local manufacturer say they are facing trouble due to hike in sugar price -- a key ingredient for the sweet items. The surge in price is putting a negative impact on the industry.

The local manufacturer Olympic Industries produces candies of different flavour including Olino Wafer, Olino Wafer, Knock Chocolate Coated Wafer, Chokito Teddy Bear, Toffeeto Chocolaty Jar, Juicy Litchi, Green Mango, Pineapple, Ripe Mango, Chokito White, Tetul Candy, Chokito Chocolate Bar, Chokito Racing Chocolate, Jhaal Tetul and Tasty Milk.

PRAN-RFL Group Marketing Director Kamruzzaman Kamal pointed out that they have been marketing the adoring products since 1997.

“Currently, we focus on export after making a triumph over local market where Mango candy and Lollipop sell like hot cake. Apart from making export to India and Nepal, we are shipping our products to US, Canada, Australia, Europe, Africa and Middle East,” said Kamal.

Talking to The Business Post, many shopkeepers said their sale of chocolate is going on well as the pandemic is dying down. Besides, the young generation prefers candy nowadays as a gift which also boosts their sales.

According to the report published in March by TechSci Research, the global candy market is anticipated to reach over $ 70 billion by the end of 2026.

Also, it will grow at a compound annual growth rate of over 5 per cent during the forecast period owing to increasing innovation in existing products and rising demand for chocolate products globally.

It observed that the rising health concerns about diseases like obesity and diabetes are somewhat inhibiting the growth of the global candy market, but to keep the concerns at bay, sugar-free and low-calorie candies are being manufactured.

In terms of region, the global candy market is categorised into North America, South America, Europe, Asia-Pacific and Middle East and Africa.

Among these regions, North America, followed by Europe, is the major contributor based on sales and demand in these regions.

Sugar confectionery consumption dominates the Asia-Pacific and the Middle East and Africa due to lower product cost.

The Asia-Pacific region is anticipated to grow at a much faster rate during the forecast period, finds the report.

Apart from the local candies and chocolate, many foreign brands have also grabbed a major portion of the local market. Currently, Nestlé Bangladesh Limited, Route to Market International Limited, INTEC Distributions, Taher Trading and few others are importing foreign candies and chocolate in the country to meet the growing demands of upper class consumers.

Foreign Dairy Milk of Cadbury, Kit Kat, Mallow World, TAKE, BREAK, Kitkat Chunky Caramel, Kitkat Arabic Coffee, Kitkat 70 Dark Chocolate, Amul Milk Chocklet are some of the foreign brands in the local market.

These candies and chocolate are mainly imported from India, China, the United Arab Emirates, Thailand, Myanmar and Malaysia.

According to the report of Mordor Intelligence, an India based market research firm said that PRAN RFL Group, Perfetti Van Melle, Olympic Industries Limited, ACI Foods Limited is the major companies operating in Bangladesh Candy Market.